An old Monty Python audio skit goes like this …
Radio Announcer: And now the BBC is proud to present a brand new radio drama series, “The Death of Mary, Queen of Scots.” Part One: The Beginning.
(music)
Man’s voice: Yoo arrr Mary, Queen of Scots?
Woman’s voice: I am!
(sound of violent blows being dealt, things being smashed, awful crunching noises, bones being broken, and other bodily harm being inflicted. All of this accompanied by screaming from the woman.)
(music fades up and out)
Announcer: Stay tuned for part two of the Radio Four Production of “The Death of Mary, Queen of Scots”, coming up…almost immediately.
(music then sound of saw cutting, and other violent sounds as before, with the woman screaming. Suddenly it is silent.)
Man’s voice: I think she’s dead.
Woman’s voice: No I’m not!
(sounds of physical harm and screaming start again. then music fades up and out)
That’s pretty much how it went for gold this week. It suffered a vicious beating earlier in the week, and was pronounced dead by so many people I was starting to believe it too (in the short-term, anyway). Then gold surprised most everyone by picking itself up off the mat.
Here’s a daily chart of gold …
Here’s a weekly chart, so you can see the big picture …
And here’s the counterparty to all this, the U.S. dollar Index. It’s sitting on the other end of the See-Saw of Pain, and it’s the one dishing out the licks to gold. I’ll just give you the weekly chart …
What’s my take? I expect gold still has to work out whether it’s going to break the neckline of the inverse head-&-shoulder pattern on its weekly chart. And working that out probabably means tagging both the top and the bottom of the triangle pattern on its daily chart. That’s right — I think it could tag them both again.
That is, unless the dollar rolls over and goes face first into the corn field.
Volatile times, my friends. But the big picture for gold remains in place. Gird your loins, get some steel in your spine, and hang tough. Time — and history — are on gold’s side.
Related Posts
- Monday Charts — The Dollar, Gold and Oil (04/13/08)
- Charts of Gold, Gold Miners, Brazil and More (10/02/09)
- 3 Charts on Gold and Oil (10/19/09)
- New Charts on Gold — Short-term Pullback? (02/03/09)
- Charts on Gold, the Dollar, Oil — and News … (07/23/08)
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